INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Decisions don’t need a approval
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Hard to get out of business
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A hobo tells you what to do
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Split profit equally
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Detailed explanation-1: -Disadvantages of sole trading include that: you have unlimited liability for debts as there’s no legal distinction between private and business assets. your capacity to raise capital is limited. all the responsibility for making day-to-day business decisions is yours.
Detailed explanation-2: -The sole proprietorship is merely an extension of its owner: a sole proprietor owns his own business, and no one else owns any part of it. As the only owner, the sole proprietor has the right to make all the management decisions of the business. In addition, all the profits of the business are his.
Detailed explanation-3: -Minimal paperwork and low set-up costs are two major benefits of having a sole proprietorship. In addition, there is the ease of maintaining it. In fact, according to the SBA, it’s the simplest and least expensive business type you can establish.
Detailed explanation-4: -A sole proprietorship is a business that can be owned and controlled by an individual, a company or a limited liability partnership. There are no partners in the business.